Our Products

Master Trade Finance Insurance Policy

The policy insures financial institutions against the risks pertaining to the refusal or failure of issuing/obligor banks to honor their obligations due to reasons associated with commercial or political risks.
 
The insured Trade Finance Instruments have to be related to export of goods or services of Arab origin to any part of the world, or import of strategic goods or equipment of non-Arab origin by an Arab county.
 
This service helps the banks expanding their geographical reach as well as enhancing their business volumes through secured means, hence obtaining capital relief, given Dhaman’s “AA-” stable outlook rating.
 
Dhaman compensates the insured bank up to 100% of the insured value of the trade finance instrument.

 
Eligible Trade Finance Instruments:

  • Letters of Credit (confirmation، deferred payment & Negotiation).
  • S.T. Trade Finance Loans، Avalized Drafts & Banker’s Acceptance.
  • Post-Shipment Financing or Re-Financing associated with LC’s.
  • Irrevocable Reimbursement & Payment Undertakings.
  • Participations in Syndicated Agreements & Purchases of Payment Obligations under different trade instruments.
  • Sharia Compliant Financing Instruments (Murabaha & Sukuk).
     

 
Covered Risks

  • Commercial risks:
    – Bankruptcy
    – Protracted default

  • Political risks:
    – Transfer restrictions
    – War and civil disturbances
    – Confiscation, Expropriation and Nationalization
    – Measures taken by the authorities of the country of the Obligor bank that prevent it from exercising its rights
     

Master Trade Finance Insurance application (PDF)
 

Master Trade Finance Insurance Policy brochure (PDF)